HTC One component shortages are real, HTC ‘no longer a tier-one customer’ for component suppliers

HTC_ultrapixels-sensor

We already heard that the HTC One was going to have supply issues because of component shortages related to the UltraPixel camera, and shortly after, the phone was delayed by two weeks in the UK. According to the Wall Street Journal, several retailers have been informed of the delay, including Vodafone and Best Buy. Best Buy stated that the plan was for a release in the 3rd week of March, “but the date has been pushed back.”

HTC executives did confirm the UltraPixel was the culprit, but also mentioned some shortages with metal casings. Previous reports indicated a production issue, but now we are hearing the problem lies with last year’s dismal performance. “The company has a problem managing its component suppliers as it has changed its order forecasts drastically and frequently following last year’s unexpected slump in shipments,” said an HTC executive. “HTC has had difficulty in securing adequate camera components as it is no longer a tier-one customer.”

Unfortunately when it rains it pours, so the big question is how much of a delay are we really going to see? Unfortunately we don’t have an answer, and even when they do officially launch the device, will there be enough supply? At the event in February, they stated that the HTC One would be available in more than 80 countries through more than 185 carriers by the end of March, but right now it’s non existent.

I don’t have to tell you how bad this is for HTC since they are coming off a 3 year low in sales. What’s most interesting is the UltraPixel camera is the culprit, and it’s my opinion that consumers aren’t going to buy into the “lesser pixels” argument. So the phone is delayed for what HTC believes will be a big reason why they will sell more units this year, but “that reason” might actually hurt their sales.

source: WSJ

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  • http://twitter.com/DallasMunoz C. Munoz

    Consumers don’t realize that pixels are irrelevant unless they plan on blowing up their pictures. The amount of pixels has little to do with the actual quality of the image. Pixels just determine the maximum print size that the photo still looks good in.

  • Richard Yarrell

    This isn’t good news for HTC.